Sports betting technology supplier Sportech announced its transition from the London Stock Exchange (LSE) to the smaller London AIM exchange is now complete.
Migration to AIM Complete
Sportech informed all interested parties that, as of the start of the trading day today, Sportech common shares were admitted to trading on the London AIM exchange under the ticker symbol “SPO”, to complete the migration of the company from the Main Market of LSE.
The strategic move was initially proposed by the Board of Directors in June and Sportech announced it would be convening a general meeting of the shareholders on June 29, 2021, at its offices in Edinburgh to vote on the proposal.
According to listing rules, Sportech needed 75% of the shareholder vote, cast either in person or by proxy, to approve the strategic move touted by the Board of Directors as highly beneficial to the company in the long term.
The Directors expressed their strong belief that AIM is much better suited to small-to-medium-sized companies like Sportech, as it would offer the tech firm a greater level of flexibility to agree and execute future corporate transactions in a more cost-effective way.
With lighter regulation in place compared to the main listing of the LSE, the London AIM offers small- to mid-cap companies much easier access to investors via initial public offerings (IPOs), a route many companies listed on the founded in 1995 exchange already utilized.
2020 Financial Struggles
The supplier of betting technology for online gaming companies, casinos, and racetracks, as well as a pari-mutuel operator and potential sports betting partner of the lottery in Connecticut, confirmed its ordinary shares began trading this morning at 20p each.
Sportech suffered in 2020 after restrictions related to the ongoing spread of the coronavirus led to a 41% fall in the company’s revenue to £20 million ($27.5 million), resulting in an EBITDA loss of £2.3 million ($3.2 million), compared to £1.9 million ($2.6 million) in the year prior.
Seeking to soften the impact of the coronavirus-related restrictions, Sportech shrank its operating capacity by selling its Global Tote business to Australian technology company BetMakers Technology Group in a £30.9 million ($42.5 million) deal announced in December.
In February 2021, Sportech agreed to the sale of its Bump 50:50 in-stadium raffles business to the Canadian Banknote Company for £5.7 million ($7.8 million). In June, the technology supplier announced both transactions completed, as well as a sale of a freehold property in Connecticut.